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This is incorrect - Airbus has to pay off the launch aid form governments that paid for it. The WTO later ruled this form of financing illegal, so in the last t
by InTheArena 8y ago
This is incorrect - Airbus has to pay off the launch aid form governments that paid for it. The WTO later ruled this form of financing illegal, so in the last two years, Airbus has been converting it to more conventional financial structures.
see: https://www.flightglobal.com/news/articles/airbus-confirms-a380-and-a350-launch-aid-amendments-448786/ https://www.flightglobal.com/news/articles/airbus-confirms-a...
- usr1106 8y ago> Airbus has to pay off the launch aid form governments that paid for it. I don't think so. The article you linked says only that they need to be in compliance with WTO rules. There is nothing about no government support at all. According to recent media reports in Germany Airbus and its subcontractors got a 1 billion loan for developing the plane. Paying back them is coupled to the commercial success of the product. Because of the premature end of the product the companies will probably never have to pay the loans completely. Exact figures are not public yet. https://www.handelsblatt.com/today/companies/super-loss-maker-airbus-bids-adieu-to-a-costly-adventure/23988758.html https://www.handelsblatt.com/today/companies/super-loss-make...
- InTheArena 8y agoNot paying these loans back would break the WTO rules - hence the conversion of the RLI/RLA to conventional structures that must be paid off (and they are considerably more then 1billion).